The geographical area of Budhiganga Rural Municipality is 56.41 sq km. It has a population of 41586 according to census 2011. This rural municipality has seven wards. It was formed by merging four former VDCs. The headquarter of this municipality is situated in Hathimudha. It is named after the river Budhiganga.

This is the industrial base of Biratnagar. It has lemon, sun flower field for commercial production. Other cash crops are also the source of income people living here that they supply it to Biratnagar city.

The administrative structure under this rural municipality has five departments. Administrative, Planning and Monitoring Department, Infrastructure Development and Environment Management Department, Social and Economic Development Department, Education, Youth and Sports Department, Internal Audit Unit.

The Chairperson and Vice chairperson this rural municipality are Bal Chandra Majhi and Amrita Kumari Gachhadar.